sameer (Article) (122 Points)
26 March 2013The Company received a bill of 90,000/-, in which laobor expense is 20,000 and rest is material cost. In this Bill my query is that, whether TDS limit is cover or not ?
Because in this bill labour expense is only 20,000, for checking the limit whether material amount is to be considered or not? Kindly provide any case laws and reference to this query,
Reply fast, Its URGENT!!
RAVITOSH KUMAR
(Executive)
(324 Points)
Replied 26 March 2013
TDS will apply to this transaction as it exceeds the monetary threshold of 30000 for individual transaction and 75000 annually, provided the cost of mtaterial is not mentioned in the bill separately.
So check the bill if the cost of material is mentioned separately or not.
sameer
(Article)
(122 Points)
Replied 28 March 2013
I am Already Mentioned out that the break up of bill of 90,000/- are 20,000 labour and 70,000 material.
So as per answere your explanation TDS is not deducted,
Kindly Provide answer with eviddence
CA. AJAY PANCHARIA
(CA)
(527 Points)
Replied 28 March 2013
I think TDS will not apply as the job amount is only 20,000
satisfying both the condition
1.single bill not exceed 30000
2.total bill amount not exceed 75000 during a year .
note: the bill should clearly differentiate the material amount and job amount.
Ajay
CA Prashant Gupta
(DGM (F & A))
(14068 Points)
Replied 29 March 2013
| Originally posted by : Aanya | ||
 |
If 2 different bills are received.. i.e 1 for labour and another for material then no TDS will be applicable.. However if you have received a single bill of 90,000/- the TDS u/s 94 C will be applicable |
 |
agree with Aanya, if there is single bill then it is assumed full bill is for contract. it doens't effect that whether there is separtation of detail or not. There is one bill so deduct TDS on full amount
Phalgun
(Audit Manager)
(327 Points)
Replied 29 March 2013
As per section 194C if material value & labor value is separately disclosed on bill TDS will be attracted on labour amount only provided it exceeds the limit, othrwise not shown separately TDS on entire value is attracted.
CA Prashant Gupta
(DGM (F & A))
(14068 Points)
Replied 30 March 2013
Dear Phalgun
as per circular no 715 dt 8-8-1995 reimbursement can't be removed from bill for TDS
on this Delhi Bench of Income tax Appellate tribunal decided in ITO vs Dr Willmar Schwabe India (P) Ltd 2005 that if there is one combined bill then TDS will be charged on full
So in this case TDS will be charged on full bill
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